Decide
first how much loan you can really take as some financiers have the schemes to
give 100% auto finance by taking some advance or a deposit from you. Before
going for such scheme look beyond the interest factor doesn't rush into take a
car loan just because interest rates offered on such loans are low.
Avoid
"flat interest rates", on the basis on cash flow again calculate the effective
rate of the scheme. In this method of calculation the effective interest rate
is actually turn to be higher than the normal method (Monthly reducing balance,
Annual reducing balance etc).
The
person who can't afford shelling out large amount as monthly payment should find
out the bank which offer a step-up option. But, expect to pay higher amount with
a salary hike, promotions etc. There are some banks which have schemes which offer
auto loans for 7 years. Hunt for them, read the papers carefully before
going for a automobile loan. Always try to avoid the flat interest rate
and deposit down payment to reduce the total loan amount, interest and EMI
payments.
